Amazon and Hulu have already started churning out original series, while Apple reportedly seeks to make its own content. With "well-funded" players entering the space and Netflix shares up 160 percent this year, the stock offers limited upside, argued trader Dan Nathan.
Trader Brian Kelly agreed, saying that rivals will eventually pose a bigger threat to Netflix.
While he admitted that Netflix faces a tough road ahead, trader Guy Adami contended that its stock could still climb from just under $127 per share, where it closed Thursday.
Walt Disney — one company that has seen big benefits from acquiring content like "Star Wars" and Marvel — looks appealing on weakness, Nathan added. He noted that it looks like a stronger buy at $105 per share, down from its Thursday closing price of about $112 per share.
Long PFE buy-write, Long TWTR & Long March Risk Reversal, Long EEM Dec 35/32 Put Spread, long IWM Dec Put Spread, Long UUP call spread, Long XLU Dec Call Spread, Long PYPL Jan Risk Reversal, Long M Jan16 52.50 / 62.50 call spread, Long INTC Dec Put Spread, Long XLF Dec put spread, Long NTAP risk reversal, GM Long Jan Put Butterfly
Brian Kelly is long BBRY, Bitcoin, GLD, HEDJ, Hong Kong Dollar, TLT, US Dollar; he is short Yuan, British Pound, Candaian Dollar, Euro, GSG, Yen, EEM, EWC, EWH, SPY
Karen is long BAC, C, FL, GOOG, GOOGL, JPM, KORS, KORS call spreads, M, SEDG, URI, she is short SPY, Her firm is long ANTM, AAPL, BAC, C, DIS, DIS puts, FL, FL calls, GOOG, GOOGL, GPS, JPM, KORS, LYV, MA, URI, URI long puts, WFM, her firm is short IWM, SPY, MDY. Karen Finerman is on the board of GrafTech International.
Guy Adami is long CELG, EXAS, INTC, Guy Adami's wife, Linda Snow, works at Merck.